The Glacier Moves a Little Further Left
Interesting article in the Reno Gazette Journal yesterday. The salient points:
1. Senate Majority Leader Harry Reid (D-NV) told Reno casino heads he intends to support legalizing online poker in the U.S. (but not any other form of online gaming). Reid's support would be instrumental in pushing any bill legalizing online poker in the U.S. through the Senate.
2. The Reno casinos have expressed concern that online poker will lead to full-blown online gaming, both of which will hurt the bottom lines of small Nevada casinos.
So you have Harry Reid, a Democrat only the state of Nevada could produce, now softening what had previously been a hard-line stance against online poker. This is not a surprise. Reid is barely beating Republican Senate challenger Sharron Angle in the polls ten weeks out from the election -- and mind you, Angle is a Tea Party candidate from whom even Fox News has distanced itself. Reid should be winning this election easily. Angle was by far the worst of the three Republican candidates who could have come out of the Republican primary and yet still Reid is struggling against her. It was only a matter of time before the vast coffers of campaign contributions available from Harrah's, online poker sites and others with similar interests persuaded Reid of the error of his ways.
You have the Nevada casinos who, perhaps not surprisingly, do not present a united front on the internet poker issue. The large casino holdings -- the Stations, the Harrahs, the MGMs and the Wynns of the world -- are more or less in favor of regulated online poker in the United States. Harrah's in particular hopes to leverage its WSOP brand into an online poker site. Whether the other large casino chains would follow suit is less clear, but they at least seem to recognize that one way or another online gaming is coming and they need to find ways to synthesize it into their current business. Adapt or die.
On the other side of the ledger are the smaller upstate Casinos -- places like the Peppermill in Reno. It seems like they expect to get out-muscled on the online front by the deep pockets of their larger cousins. Rather than look for niches they can take advantage of with respect to legalized online poker, they're taking a "the sky is falling" approach to the whole thing. In a state with unemployment at 14%, the Reno casinos (and Angle) have decided to try the scare tactic of "supporting any bill that legalizes online poker will take jobs away from Nevadans".
A few weeks ago I said "Wake me when we get there," regarding the return of legalized online poker in the United States. Certainly Reid changing his stance is helpful, but there are still lots of moving pieces that have to fall into place. As long as operators whose interests *should* align with legalized U.S. online poker dig in their heels and set their backs against it (Commerce Casino, I'm looking at you), legalized online poker in the U.S. will remain a fair distance off.
